Commencement of Investment Activities Strengthens rbidz’s Confidence
An aerial view of RBIDZ Phase 1A, which is located in close proximity to the Port of Richards Bay.
World-class infrastructure geared for investors
The Richards Bay Industrial Development Zone (RBIDZ) boasts award-winning, state-of-the-art infrastructure that aims to encourage international competitiveness and attract investments into its estates. The RBIDZ’s own investment in its world-class infrastructure is worth more than R900 million, received through the SEZ fund. The two fully developed estates - Phase 1A and Phase 1F - are well equipped to accommodate investments for light manufacturing industries as well as general and heavy manufacturing industries. Both estates are fully serviced and declared Customs Control Areas, with 24-hour security and surveillance. Two giant investment projects have recently commenced construction in the RBIDZ: a palm oil refinery in Phase 1A, and a multi-billion titanium beneficiation plant in Phase 1F. It is expected that this will revive investor confidence and position the RBIDZ as an ideal investment destination that is strategically positioned along the deep-sea waters of the Port of Richards Bay.
Invest in agri-business and agro-processing opportunities in the RBIDZ
Nyanza Light Metals investment paves way for the ‘Titanium Capital’
An artist’s rendition of the Nyanza Light Metals Technical Services Centre.
Construction takes off for the R4.5-billion chemical manufacturing plant in Phase 1F estate Nyanza Light Metals (Pty) Ltd, a leading chemical manufacturing company with its headquarters in Gauteng, will be accommodated in Phase 1F of the RBIDZ. Nyanza Light Metals was established in 2011 by a Johannesburg-based private equity company, which has begun the process of building its 80 000-ton per annum (tpa) titanium dioxide (TiO2) pigment manufacturing plant in the Richards Bay Industrial Development Zone (RBIDZ), 170km north of Durban in South Africa. Titanium dioxide (TiO2) pigment, a US$20 billion-a-year market, is a fine white powder used to provide whiteness and opacity in the manufacturing of products such as paints, industrial coatings, plastics, papers, inks, foods, medicines (such as pills and tablets) as well as most toothpastes. Nyanza Light Metals is now developing a R4.5billion titanium beneficiation plant in the RBIDZ that will produce titanium dioxide pigment and other nano titanium-related products from titaniferous slag.
The project will be rolled out in two phases. The first phase is the construction of the Technical Services Centre (TSC), with an investment value of R130 million. The TSC is expected to employ about 100 people during its construction phase and create an estimated 60 permanent jobs post-construction. The second phase is the main commercial plant, which accounts for R4.3bn of the investment value. This final phase of the project will account for approximately 280 permanent jobs as well as more than 1 200 construction jobs, and will take three years to construct. The recent appointment of Grinaker-LTA (G-LTA) as the company that will design and construct the top structure of the Nyanza Light Metals TSC plant, heralds the start of this unique and significant project – one which will enhance Richards Bay’s position as the “Titanium Capital” of the Africa. The duration of the construction of the TSC is anticipated to be 12 months. The semi-production plant will operate for a year to allow the completion of the preconstruction engineering for the main commercial plant. G-LTA is a pioneering, 100% Black-owned, multidisciplinary construction and engineering company with a high performance and efficient delivery track record, having won various awards in the construction and engineering sector. G-LTA delivers its exceptional capabilities in the following global sectors: civil engineering, building construction as well as mechanical and electrical engineering. It is a condition of the contract that G-LTA will subcontract a proportion of the work to sub-contractors in the region with the necessary skills and experience to participate in the project. Moreover, Nyanza Light Metals has also secured a 10MW deal with Distributed Power Africa (DPA) to deploy a solar energy solution at its titanium minerals processing and chemicals manufacturing plant. DPA will engineer, finance and construct a solar energy solution for Nyanza in a phased power lease agreement, with the first megawatt projected to be deployed in the first quarter of 2021. Overall, the entire chemical (commercial) plant has a total energy requirement of 22MW once fully operational.
PORT OF RICHARDS BAY •
Port of Richards Bay is one of the world’s leading bulk ports and deep seaport.
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RBIDZ’s proximity of the port (2,5km) allows cost-effective transportation of bulk goods via road, rail and overhead conveyor systems
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TOP Top 66REASONS reasons to TO INVEST IN invest in RBIDZ RBIDZ WEALTH OF MINERALS AND SUPPORTING INDUSTRIES •
Richards Bay is underpinned by a wealth of natural and mineral resources as such aluminium, titanium slag, iron ore, chrome ore, ferrochrome, zirconium, manganese ore, pig iron, and tec.
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Richards Bay has the characteristics of a highly industrialised urban complex with companies, amongst others;
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The largest aluminium smelter in the Southern Hemisphere (South32), two heavy sand mines (Tronox and RBM), one of the leading coal terminals in the world (RBCT) and sulphuric Acid Company (Foskor).
Exports over 30 varied commodities to a host of locations around the world
CONNECTIVITY •
Multi access road and rail systems close to major routes within South Africa and the rest of Africa (158km to Durban and 487km to Johannesburg).
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RBDIZ is approximately 380km away from Maputo, Mozambique through the newly built MaputoKatembe Bridge (Gateway to Southern Africa).
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A dedicated rail service to and from the coal fields in Mpumalanga and Gauteng and rail to Durban, Swaziland and Mpumalanga.
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RBIDZ has direct connection to the Lilly Pipeline (operated by Sasol) and direct access to existing distribution channels.
INDUSTRIAL ESTATE •
Industrial land pockets are serviced with bulk infrastructures such as tarred roads, utility networks and high-security fencing. Site services include surveillance and security and maintenance on a 24-hour basis
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Ideal choice for investors seeking a cost-effective, low entry cost, long term leases of fully serviced and level sites for domestic and export markets.
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Dedicated in-house Customs Controlled Area (CCA) that supports services to expedite forwarding and clearing.
ONE-STOP-SHOP •
A key value-adding service that reduces the red-tape and turnaround times of investor and business queries. •
OSS assists in the facilitation and application of visa, work permits and other migration processes and
• Application of SEZ incentives such as duty-free on imports for production-related raw materials including machinery and assets used in production to export the finished products, VAT exemptions under specific conditions for supplies procured in South Africa, 15% corporate tax and 12i tax allowance)
GOVERNMENT SUPPORT •
Strong working relations with the City of uMhlathuze, Transnet, Development Agencies (KZN Growth Fund, IDC, DBSA, Ithala), the dti, Trade and Investment KwaZulu-Natal (TIKZN) and EDTEA (KZN Economic Development, Tourism and Environmental Affairs).
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Collaboration with the dti on grant support through the Black Industrialist Scheme (BIS), capital towards bulk infrastructure and financial support for investor related infrastructure (SEZ Fund).
SEZ Incentive Framework
CAPEX
Tax incentives
Grant incentives
Critical Infrastructure Projects
12I
Black Industrialist Programme
12R
R&D
COMPETITIVENESS
12l
SEZ Fund
Strategic Partnership Programme
11d
Tax Deductible incentives 12I Income Tax Allowance the dti - Objective: Capital investment & training for Green / Brownfield projects - Criteria: Min investment of R50mn Greenfiled / R30mn Brownfield - Benefits: 35% qualifying assets (55% if “preferred status”) – Greenfield capped at R900mn; Brownfield capped at R550mn, plus training allowances of R36 0000 per employee - Note: “Preferred status” based on points. Application cut off Dec 2017. Turnaround 1 - 2 months. Investment must be acquired after date of approval
Key to incentives
Technology Innovation Agency
Identified for chemicals Potential additions SEZ only
Grant Incentives
12L Income Tax Energy Efficiency Savings
11D Income Tax Act – R&D Incentive
Critical Infrastructure Programme
Black Industrialist Programme
SA Nat. Energy Dev. Inst. (SANEDI)
the dti
Department of Science and Technology
the dti
- Objective: To encourage efficient use of energy - Criteria: Activities generating energy from combined heat and power; “captive” power plants (with energy efficiency greater than 35%) - Benefits: Deductions of 95c/kWh of energy savings against baseline measured at the start of each year - Note: Claimable until 1 Jan 2020. Applies to all energy carriers (excl. renewable energy), based on annual report of a SANAS accredited measurement and verification body
- Objective: Supporting critical infrastructure development - Criteria: Min BBBEE level 4 (takes into account exemptions for Qualifying Small Enterprises). Up to 50% for agro-processing, aerospace, defence industries. - Benefits: 10% to 30% of the total qualifying infrastructural costs, up to R50mn
Tax deductions are only applicable if company is profitable
- Objective: To encourage private sector investment in scientific and technological R&D activities (intended for use in production of income)
- Objective: Funding >50% black owned and managed businesses for new and expansionary investments
- Criteria: Companies undertaking scientific and technological R&D in SA
- Criteria: Min investment of R30mn in specified productive sectors. Includes: capex, feasibility studies (3% of projected total), post investment support (max 500k), business dev (max R2mn)
- Benefits: A deduction equal to 150% of expenditure incurred directly for R&D and an accelerated depreciation deduction (that is, 50:30:20) for capital expenditure incurred on machinery or plant used for R&D. - Note: Lead times on adjudication of applications approx. 1 year; inconsistent adjudication of projects: inconsistent definitions of what constitutes R&D activity
- Benefits: cost sharing grant from 30% - 50% to approved entities, capped at R50mn - Note: If no financial closure within 90 days after approval, grant is withdrawn. IDC approval approx. 6 months
Grant incentives applicable to selective groups; criteria considerations may be onerous
Let’s do business together
Contact us:
Invest@rbidz.co.za
www.rbidz.co.za
+27 35 797 2600